Ontario HST on Travel & Transportation
The municipal transit you take to the airport is HST exempt, as it was exempt from GST and PST prior to July 1st. Luggage is subject to HST since GST and PST were both charged prior to July 1st – no change there. Air travel originating in Ontario and ending in the United States of America is HST exempt, but is subject to 5% GST just as it was before. Air travel originating in Ontario and ending outside of the USA and Canada is HST exempt. Rail, boat and bus travel is also HST exempt if it terminates outside of Canada.
Those are the elements that didn’t experience a change in the amount that is taxed. Hotel rooms were subject to 5% GST and 5% PST prior to Harmonized Sales Tax. Under HST hotel rooms will be taxed at the full 13% HST moving forward. Taxi services used to be charged GST, but under HST that will change to 13% HST. Going camping? Your camp site fees are now taxed at 13% HST, a 7% increase comparing to the 5% GST that used be. Lastly, domestic air travel used to be subject to only a 5% GST – under Harmonized Sales Tax that changes to a 13% HST.
The question remains – will Harmonized Sales Tax help airlines, campground owners and taxi companies reduce their operating costs enough to lower prices at least 7%? If that doesn’t happen, the consumer’s fears become reality – prices are increasing. If the HST allows businesses to lower their service prices, well then the government is correct. Time will tell which group is correct – if you have any evidence of price changes in these sectors please post your thoughts below.
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People are so poor right now that I can’t believe that our Premier does not care about the impact on the average person. Ontario is paying a very big price for voting this Premier and his party in. Also doing interview’s with children in the background is not ok when in reality he is taxing all of their parents and making life pretty difficult for some. As usual the average person is carrying the load.
Yes, I agree Nancy.
Now, the HST is brought an upward pressure on food prices, transportation costs and home utilities. Furthermore our government is a little careless (meaning the politicians). They get to keep 30% of our taxes in their pockets and spend another large portion on Canadian soldiers in Afghanistan. What a waste of money!!!!
The increase in oil prices. Well that’s a REAL SHAME for humanity. These politicians (the ones in US) act like bastards who have taken control over oil resource in Middle East just to make profit for themselves without considering the increase in everyday goods and services for the consumer on average (here in North America and Canada)
And one more thing,
SHAME on BC Premier Gordon Campbell for his work!
SHAME on all other politicians who remain happy for their selfish desires and exclude caring for ALL their country’s people.
Remember a man is to be governed by the LAW as set by One God NOT by the will of another man.
The food prices didn’t go up because of HST, that is the economy, there is no HST on basic groceries, which is just about everything except junk food.
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